• The U.S. Security and Exchange Commission (SEC) has filed a lawsuit against Binance alleging federal securities law violations, leading to a selloff in Coinbase stock.
• Binance CEO Changpeng Zhao (CZ) called the lawsuit an attack on the entire crypto industry and Binance denied the allegations, claiming it is not a U.S. exchange.
• Following the SEC’s action, decentralized exchange trading volume grew 88%.
SEC Files Lawsuit Against Binance
The U.S. Security and Exchange Commission (SEC) has filed a lawsuit against Binance for allegedly violating federal securities laws, triggering a selloff in Coinbase stock (COIN). This lawsuit was seen as an attack on the entire cryptocurrency industry by Binance CEO Changpeng Zhao (CZ).
Binance Denies Allegations
Binance denied the allegations of wrongdoing and expressed disappointment at the SEC’s actions, claiming that it is not a U.S.-based exchange and stands with “digital asset market participants in the U.S”. It further stated that it would fight “to the full extent of the law” against any action taken by the regulator over its compliance with federal securities laws.
Decentralized Exchange Trading Volume Grows
Following this lawsuit, trading volume on decentralized exchanges saw an increase of 88%. Additionally, Genesis was granted a plan extension while FTX was barred from taking part in mediation between itself and other parties involved in litigation with SEC over their alleged violations of securities laws .
Gensler Confident SEC Can Win Against Coinbase & Biance
Former chairman of Commodity Futures Trading Commission (CFTC), Gary Gensler commented on this recent development stating he is „very confident“ that SEC can win their case against both Coinbase and Biance when it comes to alleged violations of securities laws .
Conclusion
This recent move by US authorities highlights their growing concerns around cryptocurrency firms‘ compliance with federal regulations as well as their increasing scrutiny into activities conducted within this space . These events have placed heightened pressure upon cryptocurrency firms to ensure they remain compliant or risk facing legal repercussions.